Indonesia buys $25,000 house, 4.5 acres of land for $35 million
Indonesia will buy a house for $25 million, and a 4.1 acre tract of land is being acquired for $40 million, according to a news release from the country’s Ministry of Economic Development.
The land was purchased by the Government of the Republic of Indonesia (GRi) in December 2016 for a total value of $65.3 million.
The acquisition includes 2.5 square kilometers of land and a 5.5-square-kilometer plot of land.
The government is seeking a project approval for the purchase from the Federal Land Office.
In addition, the GRi is requesting a local project approval, which would enable the purchase to proceed with the approval of the Federal Lands Office, according the release.
The project will be conducted by the Indonesian National Forestry Company.
“We will use this land for various purposes, such as forestry, agricultural and urban areas,” said the Minister of Economic and Social Development, Lise Berhane.
“This is a new beginning for Indonesia.
This is a great opportunity for our people and the country.”
The land has a total area of about 15 square kilometers and is located near the town of Bandung in the Kuta district of the island nation.
In 2017, Indonesia signed a 10-year forestry agreement with the United States, worth $1.6 billion.
Indonesia has been looking to diversify its forestry industry, which is largely dependent on wood from the pine forests of Sumatra and Borneo.
However, the government has struggled to diversified the countrys forestry industry due to a lack of local timber, which accounts for 40 percent of Indonesias GDP.
The GRi acquired the land to improve its forestry production and reduce its reliance on imported timber, according a news report by the local daily, The Star.
“Our government is committed to creating jobs, and it will do so with a long-term perspective,” Berhne said in the release, according with the Times of India.
“The purchase will allow us to increase the production of our forestry products, increase our exports, and further develop the rural economy.”
The purchase of the land is a significant milestone for Indonesia’s forestry industry.
The countrys forest sector is considered a key export for the country, and the land acquisition comes at a time when Indonesia is attempting to diversifies its forest sector, according The Star, which cited sources.
“It is important that our forests are protected from fire and pollution.
That is why we have to protect the forests and preserve them in order to maintain our economic development and create jobs,” Berdane said.
The forest sector accounts for about 70 percent of the country´s GDP, but is also under threat from climate change, the newspaper reported.
Indonesia, which has about 8,500 forest fires every year, is experiencing an increase in forest fires as the country struggles to adapt to climate change and to manage natural resource shortages.
“Indonesia has a long history of forests, and we want to protect them for future generations,” Bera said.
“To do that, we must make investments in infrastructure, and increase the use of renewable resources like trees and timber.”